“The brand is losing money, and dealerships are closing,” said Ronson, who opted for a BMW instead. “Are they going to have money or not for payroll this week? There’s too much uncertainty. I wouldn’t buy a Saab again.” That is what Chuck Ronson a Saab driver had to say about the automaker. Hit the jump to read the rest of the story.
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Saab Automobile, the 64-year-old Swedish carmaker sold by General Motors Co. last year to Spyker Cars NV, is fighting to survive after halting production in March amid a payment dispute with suppliers.
Following a series of starts and stops, the main Swedish factory has been quiet since early June, and the company has delayed paying wages twice as it scrambled to raise money. The market volatility caused by the European sovereign debt crisis complicates Saab’s efforts to raise funds as banks become increasingly reluctant to loan money.
With the factory shut down, the automaker’s dealerships are going bust and employees are wondering about their future.
“The chances have definitely narrowed,” Martin Crum, an analyst at Amsterdams Effectenkantoor BV, said of Saab’s possible survival. “The longer it takes, the harder it gets.”
The uncertainty has also hit the carmaker’s stock. Spyker, which changed its name to Swedish Automobile NV in June, has plunged 69 percent this year, valuing the Netherlands-based company at 24.4 million euros ($34.7 million).
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